Why You Should Avoid GLD and SLV ETP's

Many of you have read my rants on why one should avoid the GLD, SLV and other precious metals ETP's (aka ETF's).  This letter by Kaye to his investors goes into some details on the mechanics of why they're Ponzi schemes.

http://www.gata.org/files/PacificGroupLetter-05-10-2013.pdf

Bottom line:  while GLD and SLV are convenient trading vehicles designed to track spot prices (which they are doing a poor job of, as the ETP prices are below already depressed spot prices relative to physical markets), investors are exposed to counterparty risk and will not be able to redeem their shares for physical precious metals--unless they have significant holdings--and even then there is risk if the ETP's are drained of their physical inventory, as is happening right now.  You can see the relative performances as ETF prices < spot prices < physical prices.   It's simple math and why you should buy physical coins and bars and avoid paper gold and paper silver.  Paper assets were designed by bullion banks to cheat investors out of their physical assets.

By the way, SLW is a silver streaming company, which is entirely different than the SLV ETF.

See disclaimers in the side bar.